InnerWorkings Reports Q4 Revenue Growth, Record Operating Cash Flow
CHICAGO — February 19, 2016 — InnerWorkings Inc., a leading global marketing execution firm, has announced financial results for the year ended Dec. 31, 2015.
"2015 marked the best year in our company's history in terms of both profitability and new client wins," stated Eric Belcher, CEO of InnerWorkings. "Our technology, reputation, and global platform distinguish us as the premier provider to execute marketing campaigns for the world's most successful companies."
Fourth Quarter 2015 Highlights
- Four new enterprise contracts signed, including a large comprehensive agreement with global premium spirits company Beam Suntory.
- Revenue was $270.3 million as reported and $283.8 million in constant currency, reflecting 15.1% growth in constant currency compared with $246.6 million in the fourth quarter of 2014.
- Net cash provided by operating activities was $50.7 million, compared to $3.5 million in the fourth quarter of 2014.
- Non-GAAP diluted earnings per share were $0.08 as reported and $0.09 in constant currency.
- GAAP net loss per share was $0.75 and GAAP net loss was $39.9 million, mainly due to a noncash goodwill impairment charge and other realignment-related items totaling $46.0 million.
- Non-GAAP adjusted EBITDA was $14.7 million as reported and $15.4 million in constant currency, reflecting 22.8% growth in constant currency as compared to $12.5 million in the fourth quarter of 2014.
Full-Year 2015 Highlights
- Record new enterprise contracts signed totaling $135 million in annual revenue at full run-rate.
- Revenue was $1.03 billion as reported and $1.09 billion in constant currency, reflecting 9.3% growth in constant currency compared with $1.00 billion in 2014.
- Net cash provided by operating activities was $43.4 million, compared to net cash used for operating activities of $12.5 million in 2014.
- Non-GAAP diluted earnings per share were $0.25 as reported and $0.31 in constant currency. GAAP net loss per share was $0.61 and GAAP net loss was $32.3 million, mainly due to a noncash goodwill impairment charge and other realignment-related items totaling $46.0 million.
- Non-GAAP adjusted EBITDA was $51.9 million as reported and $55.7 million in constant currency, reflecting 30.0% growth in constant currency as compared to $42.8 million in 2014.
- The Company's innovative technology became even more integral to the suite of services, with an average of 50,000 marketing professionals and suppliers logging in daily during 2015.
"We exceeded our adjusted EBITDA guidance for 2015 and ended the year on a very strong note," said Jeffrey Pritchett, CFO of InnerWorkings. "I am confident we can continue to improve our returns on invested capital through cost discipline and operating leverage as we onboard a growing list of enterprise clients in 2016 and beyond."
Fourth quarter non-GAAP diluted earnings per share were $0.08 and GAAP net loss per share was $0.75. The largest component of the difference between the GAAP and non-GAAP earnings per share was a noncash goodwill impairment charge in the amount of $37.5 million, or $0.70 per share, related to the historical performance and future expectations for a portion of the Company's international operations. The global realignment strategy announced in December 2015 will drive stronger integration of the Company's global platform to more efficiently meet client needs while improving financial results, with at least $3.0 million in profit improvement expected to be realized during 2016.
The Company expects 2016 annual revenue to range between $1.06 billion and $1.08 billion, representing growth of 3% to 5% compared to 2015 (6% to 8% compared to 2015 on a constant currency basis and excluding two operations we are exiting, one in Venezuela and another in a small European market). Non-GAAP adjusted EBITDA is expected to be between $58.0 million and $62.0 million in 2016, representing growth of 12% to 19% compared to 2015 on a reported basis and 16% to 24% growth on a constant currency basis. The Company forecasts non-GAAP diluted earnings per share to be $0.30 to $0.33, representing growth of 20% to 32% compared to 2015 on a reported basis and 30% to 43% on a constant currency basis.
InnerWorkings Inc. (NASDAQ: INWK) is the leading global marketing execution firm serving Fortune 1000 brands across a wide range of industries. As a comprehensive outsourced enterprise solution, the Company leverages proprietary technology, an extensive supplier network and deep domain expertise to streamline the production of branded materials and retail experiences across geographies and formats. InnerWorkings is based in Chicago and employs more than 1,500 individuals to support global clients in the execution of multi-faceted brand campaigns in every major market around the world. Among the many industries InnerWorkings serves are: retail, financial services, hospitality, consumer packaged goods, not-for-profits, healthcare, food and beverage, broadcasting and cable, and transportation.